Potential Opportunity Worth USD 2.5 Bn Opening Up in Lab Automation Industry by 2027 - Exclusive Research Published by MarketsandMarkets™

CHICAGO, March 2, 2022 /PRNewswire/ -- Lab Automation Industry Disruptions – Potential opportunity worth USD 2.5 Bn is expected to open up in lab automation space by 2027, owing to the open-source device placements and vendor neutral software tools, which are poised to be the next big trend. As per the sources, >90% of cars will be connected by 2026, creating huge revenue opportunities for OEMs, ISPs, TSPs, software developers, etc. With advanced ADAS, connectivity, the number of ECUs is expected to grow to 150-200. This would create opportunities for hardware suppliers, semiconductor manufacturers.

According to MarketsandMarkets™ analysis,

• There is ~USD 6.3 Bn worth of incremental revenue expected within the lab automation space by 2027, with lab workstations, information management SOLUTIONS, e-notebooks, and robotics being the key drivers.
• Lab automation market is estimated to grow at a healthy CAGR of ~6% in the coming 5 years, driven by continued integration & digitalization of lab workflow, and stringent pharma quality regulations.
• Adjacent end-use markets hold a potential of over USD 10 Bn in automated lab solutions, with clinical research, clinical diagnostics, and omics research being the major contributors.

Unknowns & Adjacencies

Currently, businesses have low access to primary intelligence to clarify some unknowns and adjacencies in these opportunity areas –

• Adoption levels of automation in NGS & PCR workflow is low. Currently it ranges between 30-40% globally, however, in developed countries it is approaching 50%. As automation reduces TAT, helps in minimization of errors and provides reproducible results, it is largely used in clinical testing applications.
• Bioinformatics, AI, & other digital tools are largely used in clinical settings vs research as former demands data analysis for clinical decision making.
• Increasing focus on generic products, biosimilars & biologics to drive greater demand for clinical research & OMICS researchers.
• Adjacent markets such as high throughput screening, AI based screening, and integrated robotic solutions to provide lucrative growth opportunities owing to current lag between technology evolution curve vs data analysis & storage demand among key customers.

Some of the growth problems encountered by robotics & digital solution providers are:

Customer prioritization and assessing unmet needs:

• What are the disruptions in our clients' businesses? How can we support them for our own growth?
• Who are the most potential customers going forward? Should we prioritize industrial labs & CROs over diagnostic & research labs or contract testing labs?
• What are the key unmet needs of customers/non-customers? Who are the key stakeholders in different technology portfolio? Do vendor selection criteria differ by these? Which new product features should be added to the existing tools?

Where to play:

• Which applications areas should we focus on? Should it be OMICS research, drug discovery, clinical diagnostics, or others?
• Which regions should we place our bets on? Should we continue with developed markets or do developing geos offer more growth opportunities?

Building a compelling Right-to-Win (RTW):

• For M&A, which are the right targets for us? Should we target robotics companies or AI/digital solution providers? Should we enter new markets directly or through partners?
• How can we differentiate with respect to competition? What is their right-to-win vs ours?

Key uncertainties/perspectives which industry leaders seek answers to:

For technology companies:

• What is the major technology/product segments driving adoption of automated solutions (Robotics, automation, etc.) in lab space?
• What are the prominent product segments (traditional or standalone) that is poised to become obsolete in the next 5 years?
• Can robotic workflow become affordable for routine manufacturing & diagnostics, or will it continue to be used in OMICS research & epidemiology research alone?
• What is the level of automation & workflow integration that would be desirable among industrial & academic researchers by end of decade?
• How can industrial customers optimize manufacturing processes to be more agile while achieving complete automation with minimum manual intervention?
• What regulatory policies can help strategize and achieve volumetric growth? How can institutionalized collaboration be leveraged in emerging markets to achieve the same?
• What can be more cost-effective strategies to support technology upgradation or infrastructure modernization among cost-sensitive customers?

For Companies in digital solution providers:

• What are the regulations surrounding data privacy and security?
• What are current unmet data/digital needs w.r.t automated or robotics or technology integration portfolio being used by key customers?
• Is brand exclusivity important for digital tools or are users open to adopt brand or technology neutral digital tools? What are the prominent customer groups those could be prioritized for short-term revenue growth?
• Which machine learning approaches can be used to address data limitations so that AI-based algorithms and AR/VR be used for drug discovery and clinical research?
• How are companies handling unmet customer needs w.r.t rapid data management needs w.r.t to current data analysis & archiving capabilities?
• When can a 100% AI integration into genomics or clinical research be expected?
• What will be the impact of automation on genomics and drug discovery market?

Therefore, MarketsandMarkets™ research and analysis focuses on high growth and niche markets, – such as robotics, automated workstations, software tools, and related markets, which will become ~80% of the revenues of the players in the lab automation ecosystem over the next 5-6 years.

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